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carefully to understand this article completely.
For 22 January 2015: -
On 21 January 2015, FII Bought INR 1275.59 crs and DII Sold
INR 761.60 crs
It has built up too much momentum in very short time frame. There
is no single negative close in past 500 points of rise. In general, I can be
bullish after this rise too but here is a fact. We have nearly 150 points gap
up on 15th January 2015 due to sudden rate cut by RBI. This gap up
is very close to give a trouble to this market.
Elliott wave theory is still saying for rise to continue but
it is going to lose its momentum somewhere. If this has to happen then today is
best possible day for consolidation based correction. Logically, it has built
up five trading sessions in a row. Most important is that the participation was
just from key blue chip stocks like sometime by HINDUNILVR or sometime by HDFC.
Low participation is a sign of correction. I mean how long I can expect
HINDUNILVR based rise. It has already moved from 760 to 950.
For today’s session also we may expect gap up opening. Now, I
am expecting a top to emerge for consolidation. Take a note that most global
market is on very crucial Fibonacci levels. Whatever the opening comes, we have
a chance of seeing a red close today. If it slides below 8700 then it can
surely invite a possible price correction. Resistance on moving higher will be
8750 and 8770.
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Strategy for Nifty January
future – SGX Nifty is
hinting me for higher start which is nothing but traditional. 50% of past 500
points of rise almost goes in gap up only. This does not make too much sense
but January month is known for this kind of activities. Technically 8770-8780
will be resistance point. Cross above 8780 can result 8830. Below 8700, we can
expect meaningful correction. sooner or later, in a day or two, it is coming.
S&P 500 (USA) – It is the same pop up which I was
talking yesterday. The chance is big that it is going to invite bulls to ride
on it and then go for some wilder sell off. As of now it looks like this rise
will end somewhere near to 2045 levels. I feel that it will give a rise in the
very first half today and then it will go in sell off mode by today itself. A big
red candle can come in maximum of two trading sessions.
